Should the abc ltd accept the order with reference

Reference no: EM132774377

Problem 1: ABC Ltd. purchased raw materials last year for Rs.100 per unit and there appears to be no possibility of selling these materials or using them in future production except if a former customer places an order. The customer is prepared to place an order for the product that will require the whole of raw materials, but he is not willing to pay more than Rs.250 per unit. The costs of converting the raw materials into the product are Rs.200 per unit. Should the ABC Ltd. accept the order with reference to relevant and irrelevant cost?

Reference no: EM132774377

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